Nestle Lanka March net profit up 9%

Nestle Lanka PLC, the local unit of the world’s largest food and beverage company, saw its March quarter (1Q18) net profit increasing 9.4 percent year-on-year (YoY) to Rs.944 million, as the company managed to contain its costs. 

According to the interim financial accounts released to the Colombo Stock Exchange last evening, Nestle Lanka’s earnings per share for the period under review improved to Rs.17.57 from Rs.16.06. The revenue for the period rose 2.5 percent YoY to Rs.9.6 billion while the cost of sales remained flat at Rs.6.06 billion, resulting in a gross profit of Rs.3.5 billion, up 5.5 percent.Operating profit for the period rose 12.3 percent YoY to Rs.1.26 billion. Nestle Lanka’s performance last year was affected by floods, lower consumer demand, and higher Value Added Tax and coconut prices.